Decathlon, a French sports goods retailer, announced on Wednesday that it will invest €100 million (about Rs 932.6 crore) in India over the course of five years. The primary goals of this investment are to increase Decathlon’s digital presence, reach 190 outlets nationwide, and procure more goods that are created in India.
At the moment, the firm runs 127 locations throughout 50 cities. Over the following five years, it plans to open 63 new stores in 40 cities. The retailer has nearly 1,700 locations worldwide.
“We are dedicated to boosting our presence here, reaching a wider audience, and using sports to improve people’s lives. We are thrilled to support local talent and help India become a sporting powerhouse. India has the potential to become a worldwide hub for Decathlon manufacture and innovation,” the speaker stated.
In 2009, Decathlon opened its first wholesale cash-and-carry location in Bengaluru, India, where 100% foreign direct investment is permitted by the government. Decathlon, however, was granted permission by the government in 2013 to invest 100% of its foreign direct investment (FDI) in single-brand retail in India. At that time, it had pledged to open outlets all throughout India with an initial expenditure of Rs 700 crore.
Undoubtedly, a report by brokerage Anand Rathi Investment states that the value of India’s sports clothing market reached $21 billion by 2023, up from $14 billion in 2020 estimates. According to the report, India’s sports industry, which includes media rights, clothing, sports nutrition, and equipment, is expected to grow from $27 billion in 2020 to $100 billion by 2027. Small retailers of sporting goods and major producers of athletic wear, like Adidas, Nike, Puma, and Reebok, make up the market.
68% of items in India are produced locally; by 2026, the corporation wants to raise this percentage to 85%, securing India’s position as a significant hub for manufacturing. Since the late 1990s, Decathlon has sourced products from vendors in India.